Here are the steps of the MLI Select process, which we have simplified for investors to follow with ease.

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1) Initial Deposit

To start the MLI Select application process, you must submit a worksheet and a portion of the down payment (the amount depends on the project agreement) to the project developer. The funds will be counted as an initial refundable deposit but will not count towards your total net worth or assets, which the MLI Select program requires you to have for project approval.

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2) Cooling Period

Once you have submitted your application form and deposit, we will introduce you to the CMHC MLI Select lender, who will ensure that you are financially qualified for the program. You will also have a two-week cooling period during which the lender can check all the paperwork before submitting it to the CMHC.

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3) Net Worth Assessment

To qualify for the program financially, you and/or your investment partner must have a net worth or combined net worth of at least 25% of the project's loan value (the minimum net worth must be $100,000). Your net worth will be calculated based on your total assets minus your total liabilities. Unlike other real estate purchases or investments, you will be evaluated based on your total net worth instead of your credit score.

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4) Application Review & Approval

Once the application has been submitted and its 2-week cooling period has passed, the deal will be considered firm, with the condition of receiving a Certificate of Insurance (COI) upon project approval. At this point, you must submit another portion of your down payment, and the application review will begin. This process should take approximately 3 to 6 months for the CMHC to review and approve. If the project is not approved, your money is protected, and you can walk away with your returned deposits.

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5) Receive Funding

Once the application has been submitted and its 2-week cooling period has passed, the deal will be considered firm, with the condition of receiving a Certificate of Insurance (COI) upon project approval. At this point, you must submit another portion of your down payment, and the application review will begin. This process should take approximately 3 to 6 months for the CMHC to review and approve. If the project is not approved, your money is protected, and you can walk away with your returned deposits.

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6) Monitor Process

As you will be paying for the construction in phases, you will keep track of the progress through updates from us, the developer. The timeline for this phase of the project will vary based on its size and complexity, and you will not be expected to pay any loan interest or development charges. You should also ensure that all MLI Select requirements (affordable rent, accessibility, energy efficiency) are met within 60 days of the final loan disbursement.

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7) Project Completion & Stabilization

The MLI Select project will not be delivered until the construction has been completed and/or if turnkey option has been chosen  with the units  leased out. This means you will not be required to start mortgage payments until you have stabilized rental income. Your property manager will be in charge of building maintenance and the day-to-day rental administration.